Game Consoles Remain Banned in China; Even Xbox w/ the New Controller-free Kinect Device? YES!

So there was news yesterday that basically confirmed that there was no new news to report. If that’s confusing then you’re in good company because China Tech News reported on Monday that Microsoft Corporation (NASDAQ:MSFT) would NOT be allowed to sell the latest version of its Xbox game console (aka – “Xbox slim”) when it is bundled with the company’s new Kinect controller-free gaming device this November. On its face it sounds like Microsoft has run into some interesting new regulatory hurdle with the Chinese government; however, on just a little further reading of the story we are reminded that this just represents the continuation of a long-held ban on all gaming consoles in China.

If you were unaware, it seems that the Chinese government has had a game console ban in place since June 15, 2000 — over 10 years. At the time it was assumed that these consoles were the primary means of game play among Chinese youth and the government held a negative view of the behaviors that they encouraged. Here’s how China Tech News describes the original ban:

“On June 15, 2000, the Chinese government issued a special “management advice” about premises that were engaged in the operating of video games and stated that since the issuance of the advice, all manufacturing and sales activities of video game devices, parts and accessories targeting the Chinese market should be immediately stopped. This rule also blocked the plans of Sony, who was about to launch its PS2 video game console in China. However, many Chinese video game lovers still can buy video games devices made by Microsoft, Sony, and Nintendo.”
– China Tech News, July 20, 2010

Commentary: So if the news is that a 10 year old ban on game consoles has not been lifted, why is this news? I would have to imagine that Microsoft is working behind the scenes to try to move the Chinese position on gaming. According to the story Michel van der Bel, COO of Microsoft China, was very deferential to the Chinese government’s right to regulate its own industries. Despite the ongoing ban he showed off the Xbox with Kinect and tied it into Microsoft’s broader “multi-screen, one cloud” strategy

When asked about whether Microsoft plans to discuss this policy with the related Chinese government department, Michel van der Bel told local media that as an international company, it is important for Microsoft to obey the local laws and rules.

This compliance strategy seems to be a continuation of the way in which it handled the showdown between Google Inc. (NASDAQ: GOOG) and the Chinese government over censoring organic search results. While Google took a defiant stance Microsoft made the same assertion above that it is important to obey local laws and rules. Although many viewed this position as a transparent attempt to curry greater favor for its Bing search engine, it may have been part of a larger strategy to show that Microsoft is a reliable US partner.

So while there is no indication that China is interested in lifting its ban on game consoles, the fact is it has been been overtaken by a paradigm shift that has brought MMOG, casual, and social networking games to the Chinese people through their personal computers — a device that cannot really be banned. The government has recently tried to exert greater control over its gaming industry but ultimately they may open their markets to consoles that support games that comply with China-approved behaviors. If that ever happens Microsoft will have proven itself a good corporate partner and it will make the introduction of their new products in China easier.

So what is Kinect?
Initially introduced as “Project Natal”, Microsoft’s controller-free gaming device, Kinect for Xbox 360, is scheduled to be released in early November 2010 with a retail price of US$150. The gaming device is intent to replace traditional game controllers with a webcam-style peripheral that will let users control and interact with Xbox games and apps through a natural user interface including gestures, spoken commands, and presented objects and images.

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[...] Game Consoles Remain Banned in China; Even Xbox w/ the New Controller-free …DigitalEastAsia.com (blog)This rule also blocked the plans of Sony, who was about to launch its PS2 video game console in China. However, many Chinese video game lovers still can buy …Microsoft announces Kinect pricing and release scheduleLos Angeles Times (blog)Kinect To Go On Sale In November For $150RedOrbitMicrosoft's Kinect to cost $199Sydney Morning HeraldAFP -Reuters Canada -NewsFactor Networkall 1,023 news articles » [...]

[...] Game Consoles Remain Banned in China; Even Xbox w/ the New Controller-free …DigitalEastAsia.com (blog)This rule also blocked the plans of Sony, who was about to launch its PS2 video game console in China. However, many Chinese video game lovers still can buy …Microsoft announces Kinect pricing and release scheduleLos Angeles Times (blog)Kinect To Go On Sale In November For $150RedOrbitMicrosoft's Kinect to cost $199Sydney Morning HeraldNewsFactor Network -The Tech Herald -The Guardian (blog)all 1,023 news articles » [...]

[...] Game Consoles Remain Banned in China; Even Xbox w/ the New Controller-free …DigitalEastAsia.com (blog)This rule also blocked the plans of Sony, who was about to launch its PS2 video game console in China. However, many Chinese video game lovers still can buy …Kinect To Go On Sale In November For $150RedOrbitMicrosoft to sell Kinect at $150, also sell bundlesReuters CanadaMicrosoft's Kinect to cost $199Sydney Morning HeraldNewsFactor Network -GameFocusall 1,023 news articles » [...]

[...] Game Consoles Remain Banned in China; Even Xbox w/ the New Controller-free …DigitalEastAsia.com (blog)This rule also blocked the plans of Sony, who was about to launch its PS2 video game console in China. However, many Chinese video game lovers still can buy …Microsoft announces Kinect pricing and release scheduleLos Angeles Times (blog)Microsoft's Kinect to cost $150, on sale in NovemberAFPKinect To Go On Sale In November For $150RedOrbitReuters Canada -Seattle Times -Sydney Morning Heraldall 1,023 news articles » [...]

[...] Game Consoles Remain Banned in China; Even Xbox w/ the New Controller-free …DigitalEastAsia.com (blog)This rule also blocked the plans of Sony, who was about to launch its PS2 video game console in China. However, many Chinese video game lovers still can buy …Microsoft announces Kinect pricing and release scheduleLos Angeles Times (blog)Microsoft's Kinect to cost $150, on sale in NovemberAFPKinect To Go On Sale In November For $150RedOrbitSeattle Times -Sydney Morning Herald -NewsFactor Networkall 1,023 news articles » [...]

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[...] Last year, I was 11,000 miles away from home staring into a tiny Beijing shop with amaranth shelves and bright bubbled posters trying to attract female customers. Lining their walls were stacks of unplayed Bratz and Hannah Montana games for PC, Nintendo, and other console systems (which are, interestingly enough, banned in China). [...]